M/S PRIME LEATHER, JALANDHAR vs. COMM. OF INCOME TAX JALANDHAR AND ANR.

ITA/532/2009HC Punjab & HaryanaPHHC01084650200910 December 2009Author: MR. JUSTICE M.S. SULLAR,MR. JUSTICE SATISH KUMAR MITTAL3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the substantial question of law raised by the assessee was not arising from the order of the ITAT. This was because the High Court had already decided a similar question of law in favour of the revenue in the case of M/s Liberty India v. Commissioner of Income-Tax, (2007) 293 ITR 520, a decision which was subsequently affirmed by the Hon'ble Supreme Court in Liberty India v. Commissioner of Income-Tax, (2009) 317 ITR 218. The ITAT had also relied on this precedent. Therefore, in view of the established legal position, the appeal was dismissed. The operative direction was the dismissal of the appeal.

What were the facts?

The assessee, M/s Prime Leather, engaged in the manufacture and sale of leather products, filed its return for assessment year 2004-05. The case was taken up for scrutiny under Section 143(3) of the Income Tax Act, 1961. The Assessing Officer disallowed the deduction claimed by the assessee under Section 80-IB of the Act, holding that export incentives of Rs. 38,23,143/- were not eligible profits for this purpose. The Commissioner of Income Tax (Appeals) partly allowed the assessee's appeal. Subsequently, the Income Tax Appellate Tribunal (ITAT) dismissed the assessee's appeal. The assessee then filed an appeal before the High Court under Section 260-A of the Act against the ITAT's order.

What were the issues?

1. Whether, on the facts and circumstances of the case, the Tribunal was justified in holding that the export incentives of Rs. 38,23,143/- were not eligible profits for the purpose of deduction under Section 80-IB of the Act? Assessee's contentions: The assessee argued that export incentives were eligible profits for deduction under Section 80-IB. Revenue's contentions: The revenue contended that export incentives were not eligible profits for deduction under Section 80-IB. The ITAT relied on the High Court's decision in M/s Liberty India v. Commissioner of Income-Tax, (2007) 293 ITR 520, which was affirmed by the Supreme Court in Liberty India v. Commissioner of Income-Tax, (2009) 317 ITR 218.

Which sections of the Income-tax Act were involved?

Section 260-A,Section 80-IB,Section 143(1)(a),Section 143(3)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. I.T.A. No. 532 of 2009 DATE OF DECISION : 10.12.2009 M/s Prime Leather, Jalandhar .... APPELLANT Versus Commissioner of Income Tax, Jalandhar ..... RESPONDENT

CORAM :- HON'BLE MR. JUSTICE SATISH KUMAR MITTAL HON'BLE MR. JUSTICE MEHINDER SINGH SULLAR

Present: Mr. Akshay Bhan, Advocate, for the appellant-assessee.

* * * SATISH KUMAR MITTAL , J. The assessee has filed this appeal under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as `the Act'), against the order dated 16.3.2009, passed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar (hereinafter referred to as `the ITAT') in ITA No. 18 (Asr)/ 2009, pertaining to the assessment year 2004-05, raising the following substantial questions of law :- (i) Whether on the facts and circumstances of the case, the Tribunal was justified in holding that the export incentives of Rs. 38,23,143/- were not eligible profits for the purpose of deduction under Section 80-IB of the Act?

ITA No. 532 of 2009 -2- In the present case, the assessee is engaged in the business of manufacture and sale of leather products. For the assessment year 2004-05, the

The order continues below.

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